Mobilizing Innovation Capability From Service Value Network to Partnering Companies: A Theoretical Study

Publication Type:
Conference Proceeding
Managing for Volatility and Stability: Proceedings of the 26th Annual Australian and New Zealand Academy of Management Conference, 2012, pp. 1 - 19
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Business firms are increasingly becoming dependent on each other to deliver services to their customers. Due to rapid changes in market conditions such as introduction of new technologies, changing customer preferences, and increasing competitive pressures on firms, the ability to build innovative capability has become a key resource and an asset. In the context of service firms, there is a growing trend of collaboration between firms facilitating value creation, Nevertheless, it is important to understand value creation in the reverse manner ie.; do networks facilitate value for individual firms in return, and are there linkages between capabilities of networks, and capabilities of individual partnering companies. As evident from extant literature, the nature and type of linkage between firms in a business network plays a critical role in facilitating innovation capability building of the network. However, in order to effectively learn from the network service firms need to possess sufficient learning capacity to transform that into innovation capability within their own firm. This paper addresses the development of innovative capability of a partnering firm resulting from a collaborative arrangement; with this backdrop the paper presents a theoretical framework.
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